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A capacitor is a passive component of electronic device that is used to store electric energy through charge separation in an electric field. Aluminum electrolytic capacitors are polarized electrolytic capacitors with an anode electrode (+) constructed of pure Aluminum foil with an etched surface. Film capacitors are capacitors that employ a thin plastic film as the dielectric. They are generally inexpensive, stable over time, and have a low self-inductance.
Furthermore, the size of electronic devices is shrinking with time, which is one of the major reasons expected to drive the growth of Aluminum electrolytic capacitors throughout the predicted period. As a result, the miniaturization of electronic devices is another key element driving demand. The global aluminum electrolytic capacitor market is expected to reach US$7.18 billion in 2023, progressing at a CAGR of 6.05% over the projected period. Similarly, the global film capacitor market is anticipated to reach US$3.44 billion in 2023, growing at a CAGR of 3.84% during the forecasted period.
Segment Covered
Aluminum Electrolytic Capacitor Market
By Type: The report provides the bifurcation of the aluminum electrolytic capacitor market into two chief segments based on the type: Non-Solid and Solid. Non solid aluminum electrolytic capacitors held a major share in the market. On the other hand, the solid aluminum electrolytic capacitors segment is expected to grow at the highest CAGR in the forthcoming years as aluminum electrolytic capacitors with solid conductive polymer electrolytes are becoming increasingly important, especially in devices with a flat design, such as tablet PCs and flat panel displays.
By Voltage: The report further provides the segmentation based on the voltage: High voltage and Low voltage. High Voltage was the market leader and is anticipated to remain dominant throughout the forecasted period. High voltage capacitor are found in inverter main circuits, switching mode power supplies, control circuits, and computer motherboards, among other electronic items and components. The market's expansion is aided by , increased demand for these products and components.
By End-Users: The report further provides the segmentation based on the end-users: Automotive, Industrial, Consumer Electronics, Telecommunications and Others. The automotive segment held the highest share in the market. Due to superior lifetime and high density power supply, electrolytic capacitors are utilized in electric vehicles, and aluminum electrolytic capacitors are favored due to their great efficiency. Thus, the market's expansion is aided by increasing sales of electric vehicles.
Geographic Coverage
According to this report, the aluminum electrolytic capacitor market is divided into four regions, namely Asia Pacific, North America, Europe, and the Rest of the World. Asia Pacific held the major share in the market owing to the rising demand for electronic devices and increase in manufacturing facilities in economies such as India and China in the region. China, and Japan are expected to play a major role in the market during the forecast period. These regions act as hubs for some of the largest automotive manufacturers and accommodate growing vehicle production and penetration of new electric vehicles over the forecast period. In North America, the US is expected to be the fastest growing region in the forecasted period. Whereas, in the Europe region, Germany emerged as a leading market as Germany has grown to be one of the world's leading manufacturers and innovators of high-tech automotive products. Moreover, on the back of Germany, a net +60% rise in Europe's automotive industry for R&D has been seen. This is resulting in growing demand for aluminum capacitors in electric vehicles.
Film Capacitor Market
By Type: The report provides the bifurcation of the market into three segments based on the type: Polypropylene Film Capacitors, Polyester Film Capacitors and Others. Polypropylene film capacitors held the majority of share in the market and is expected to keep its dominance at during the forecast period. The increase in demand for low-voltage power supplies and the need to reduce unwanted noise are some of the major reasons that drive this market's growth.
By Application: The report further provides the segmentation based on the applications: DC applications and AC applications. The su DC applications held the highest share in the market. The market's expansion is aided by continuous demand for low-cost capacitors, increasing adoption in DC applications, and rising awareness about energy-efficient electronic products. electric vehicles.
Geographic Coverage
The report provides insight into the film capacitor market based on the regions namely Asia Pacific, North America, Europe, and the Rest of the World. Asia Pacific held the major share in the market owing to increase in the demand from end-user industries such as consumer electronics and automobiles, continuous demand for low-cost capacitors, increasing adoption in DC applications, and rising awareness about energy-efficient electronic products. The market is expected to lead by China, followed by Japan and South Korea. Whereas, in the North American region, the US was the dominating market owing to increasing demand from the consumer electronics sector and rising use in industrial sectors such as defense, aerospace, and automotive in the country.
Top Impacting Factors
Growth Drivers
- Increasing Sales of Electric Vehicles
- Rising Demand from Consumer Electronics
- Surging Localization Rate of Aluminum and Film Capacitors
- Growing Use of Automation in Manufacturing
Challenges
- High Costs Associated With These Capacitors
- Growing Shift Towards Multilayer Ceramic Capacitors (MLCCs)
Trends
- Proliferating Demand from Aerospace & Defence Industry
- Accelerating Penetration of Mobile Devices
- Escalating Adoption in Telecommunication Industry
- Rising Miniaturization of Electronic Devices
Driver: Increasing Sales of Electric Vehicles
Owing to the growing concerns over environmental degradation caused by fossil fuels, rising oil prices, favorable government regulations across the globe, the demand for EVs is increasing consistently. EVs have fueled the demand for capacitor technologies with high performance and reliability. Diverse voltage, power, and size requirements of modern EV electrical subsystems necessitate careful capacitor selection by designers. Metalized film capacitors are widely used in EVs and HEVs to prevent ripple currents from reaching the power source. They are also used to smooth out the DC bus voltage in EVs and to suppress harmful high frequency components generated by switching devices in an EV's drive system. Thus, the increasing sales of EVs has supported the growth of the global Aluminum and film capacitor market.
Challenge: High Costs Associated With These Capacitors
Costs became one of the key stock price drivers in 2021 for capacitor makers given upstream capacity constraints and global inflation, which impacted both film capacitors and Aluminum capacitors. While Aluminum capacitor makers face rising power prices, the cost issues for those making film capacitors are caused by supply shortages when demand suddenly surges. However, most of the cost issues are temporary as capacitor makers can raise their prices, while a complete and longer-term solution to the film capacitor upstream capacity constraint is anticipated to take longer. By comparison, Aluminum capacitor makers can find production locations where power prices are lower to cope with rising power prices, while upstream raw material capacity expansion could expand and offset the pressure on that front. Thus high costs associated with these capacitors may restrict the overall market growth.
Trend: Proliferating Demand from Aerospace & Defence Industry
Space industry is going through a significant change of move from so far dominating government orders to a private space business. Commercial space projects for telecom satellites, broad internet access or space transport missions represent more than 50% of space business, nowadays. This transition brings a high motivation for faster adoption of the latest technology into the space hardware. New technologies are developing ways to use aluminum electrolytic capacitor in various sectors with good quality research and increased life span. These capacitors along with hermetical sealed package due to various advantages such as cost benefits over tantalum capacitors have entered aerospace and defense industries. Moreover, due to superior lifetime and other parameters, their usage has surged in the industry. Thus, proliferating demand from aerospace and defense industry would create lucrative opportunities for aluminum capacitor market.
The COVID-19 Analysis
The COVID-19 pandemic has had a major impact on the global economic system, as well as on many businesses. Similarly, the spread of the COVID-19 coronavirus has affected the passive electronic components industry through decreases in operation levels of the supply chain’s top component and raw material production facilities suppliers, and through a fall in sales in the global market in a range of regions and countries, but since then has been supported by Chinese recovery and reactivation in its main industries also drove the demand for capacitors.
Analysis of Key Players
The global aluminum & film capacitor market is highly fragmented, with a large number of small- and medium-sized manufacturers operating in the market. The key players in the global aluminum & film capacitor market are TDK Corporation, Nippon Chemi-Con Corporation, Nichicon Corporation, Panasonic Holdings Corporation, Hitachi Ltd. (Hitachi Chemical Co., Ltd.), Yageo Corporation (Kemet Corporation), Murata Manufacturing Co., Ltd., Rubycon Corporation, Xiamen Faratronic Co., Ltd., Capxon International Electronic Company Limited, Lelon Electronics Corporation, Cornell Dubilier Electronics, Inc., and Vishay Intertechnology, Inc.
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Table of Contents
1. Executive Summary
Companies Mentioned
- Panasonic Holdings Corporation
- Nippon Chemi-Con Corporation
- TDK Corporation
- Nichicon Corporation
- Yageo Corporation (Kemet Corporation)
- Vishay Intertechnology, Inc.
- Murata Manufacturing Co., Ltd.
- Hitachi Ltd(Hitachi Chemical Co., Ltd.)
- Rubycon Corporation
- Xiamen Faratronic Co., Ltd.
- Capxon International Electronic Company Limited
- Cornell Dubilier Electronics, Inc.
- Lelon Electronics Corporation
